NODK NI Holdings Inc

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported):  November 7, 2023

 

NI Holdings, Inc.
(Exact name of registrant as specified in its charter)
North Dakota		001-37973		81-2683619
(State or other jurisdiction of incorporation)		(Commission File Number)		(IRS Employer Identification No.)
1101 First Avenue North Fargo, North Dakota
(Address of principal executive offices)
58102
(Zip code)
(701) 298-4200
(Registrant’s telephone number, including area code)
N/A
(Former name or former address, if changed since last report.)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):

 

[ ]	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ]	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ]	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ]	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.01 par value per share	NODK	Nasdaq Capital Market

 

Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

 

Emerging growth company [ ]

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  [ ]

 

 

Item 2.02.

Results of Operations and Financial Condition.

On November 7, 2023, the Company issued a press release announcing its financial results for the quarter ended September 30, 2023. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein in its entirety by reference.

The information in this Item 2.02 and the Exhibit attached hereto is furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such document or filing.

Item 9.01.

Financial Statements and Exhibits.

(d) Exhibits

 

Exhibit Number	Description
99.1	Press Release dated November 7, 2023.
104	Cover Page Interactive Data File – the cover page XBRL tags are embedded within the Inline XBRL document.

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

	NI Holdings, Inc.
Date: November 7, 2023	By:	/s/ Michael J. Alexander
		Michael J. Alexander
		President and Chief Executive Officer

 

 

 

 

NI Holdings, Inc. Reports Results for Third Quarter Ended September 30, 2023

 

FARGO, North Dakota, November 7, 2023 – NI Holdings, Inc. (NASDAQ: NODK) announced today results for the quarter ended September 30, 2023.

 

Summary of Third Quarter 2023 Results

(All comparisons vs. the third quarter of 2022, unless noted otherwise)

 

·

Direct written premiums of $81.2 million, flat to prior year, driven by increases in Non-Standard Auto (17.9%), Private Passenger Auto (10.4%) and Home and Farm (7.1%), offset by a decrease in Crop.

·

Net earned premiums of $90.8 million, up 1.4%.

·

Combined Ratio of 102.0% versus 114.4%, driven by lower weather-related losses in Home and Farm, lower loss frequency in Private Passenger Auto, and favorable crop growing conditions, offset by further reserve strengthening in Non-Standard Auto and Commercial to address elevated liability loss severity and the continued impact of higher inflationary-related loss costs.

·

Net investment income of $2.8 million versus $2.0 million and net investment loss of $1.2 million versus $2.9 million, driven by higher fixed income reinvestment rates and more favorable year-over-year equity market conditions.

·

Earnings per share of $0.01, compared to loss per share of $0.47.

·

The Company repurchased 310,385 shares of common stock at an average price of $12.86 per share for a total of $4.0 million.

 

	Three Months Ended September 30,				Nine Months Ended September 30,
Dollars in thousands, except per share data (unaudited)	2023	2022	Change		2023	2022	Change
Direct written premiums	$81,223	$81,147	0.1%		$316,029	$301,642	4.8%
Net earned premiums	$90,770	$89,532	1.4%		$262,543	$243,615	7.8%
Loss and LAE ratio	70.0%	88.1%	(18.1 pts)		76.1%	93.5%	(17.4 pts)
Expense ratio	32.0%	26.3%	5.7 pts		33.2%	30.0%	3.2 pts
Combined ratio	102.0%	114.4%	(12.4 pts)		109.3%	123.5%	(14.2 pts)
Net income (loss) attributable to NI Holdings	$231	($9,985)	NM		($12,101)	($53,986)	NM
Return on average equity	0.4%	(15.4%)	15.8 pts		(6.7%)	(24.3%)	17.6 pts
Basic earnings (loss) per share	$0.01	($0.47)	NM		($0.57)	($2.53)	NM
						NM = Not meaningful

 

Management Commentary

 

“During the third quarter, we began to benefit from our significant rate and underwriting actions implemented earlier this year, with our profitability showing improvement over the prior year,” said Michael J. Alexander, President, and Chief Executive Officer. “We certainly benefited from avoiding catastrophe losses during 2023, which allowed our Home and Farm segment to return to expected profitability, along with strong results from our multi-peril crop business. Although we are pleased with our progress and return to profitability, we continue to be challenged by the ongoing effects of elevated loss cost inflation impacting our industry. Our Non-Standard Auto and Commercial segments both experienced unfavorable prior year reserve development, driven by elevated loss severity as a result of inflation and other challenging market conditions. To that end, we remain focused on pursuing continued aggressive rate and underwriting actions, along with other strategic measures to improve our overall risk profile across all lines of business. Our results continue to be positively impacted by our investment portfolio, which is producing steadily rising returns, due to higher reinvestment rates and more favorable market conditions.

 

Overall, we remain positive regarding the outlook for our business, and our ability to execute the actions necessary to provide our shareholders with appropriate returns over time.”

 

Securities and Exchange Commission (SEC) Filings

The Company’s Quarterly Report on Form 10-Q and latest financial supplement can be found on the Company’s website at www.niholdingsinc.com. The Company’s filings with the SEC can also be found at www.sec.gov.

 

About the Company

NI Holdings, Inc. is an insurance holding company. The company is a North Dakota business corporation that is the stock holding company of Nodak Insurance Company and became such in connection with the conversion of Nodak Mutual Insurance Company from a mutual to stock form of organization and the creation of a mutual holding company. The conversion was consummated on March 13, 2017. Immediately following the conversion, all of the outstanding shares of common stock of Nodak Insurance Company were issued to Nodak Mutual Group, Inc., which then contributed the shares to NI Holdings in exchange for 55% of the outstanding shares of common stock of NI Holdings. Nodak Insurance Company then became a wholly-owned stock subsidiary of NI Holdings. NI Holdings’ financial statements are the consolidated financial results of NI Holdings; Nodak Insurance, including Nodak’s wholly-owned subsidiaries American West Insurance Company and Primero Insurance Company, and its affiliate Battle Creek Mutual Insurance Company; Direct Auto Insurance Company; and Westminster Insurance Company.

 

Safe Harbor Statement

Some of the statements included in this news release, particularly those anticipating future financial performance, including investment performance and yields, business prospects, growth and operating strategies, the impact of pricing and underwriting changes on operating results, our ability to achieve returns for our shareholders, and similar matters, are forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Actual results could vary materially. Factors that could cause actual results to vary materially include: our ability to maintain profitable operations, the adequacy of the loss and loss adjustment expense reserves, business and economic conditions, interest rates, competition from various insurance and other financial businesses, terrorism, the availability and cost of reinsurance, adverse and catastrophic weather events, including the impacts of climate change, legal and judicial developments, changes in regulatory requirements, our ability to integrate and manage successfully the insurance companies we may acquire from time to time, the impact of inflation on our operating results, and other risks we describe in the periodic reports we file with the Securities and Exchange Commission. You should not place undue reliance on any such forward-looking statements. We disclaim any obligation to update such statements or to announce publicly the results of any revisions that we may make to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements.

 

For a detailed discussion of the risk factors that could affect our actual results, please refer to the risk factors identified in our SEC reports, including, but not limited to our Annual Report on Form 10-K, as filed with the SEC.

 

Investor Relations Contact:
Seth Daggett

Executive Vice President, Treasurer and Chief Financial Officer
701-298-4348
IR@nodakins.com

 

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Cover	Nov. 07, 2023
Cover [Abstract]
Document Type	8-K
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Document Period End Date	Nov. 07, 2023
Entity File Number	001-37973
Entity Registrant Name	NI Holdings, Inc.
Entity Central Index Key	0001681206
Entity Tax Identification Number	81-2683619
Entity Incorporation, State or Country Code	ND
Entity Address, Address Line One	1101 First Avenue North
Entity Address, City or Town	Fargo
Entity Address, State or Province	ND
Entity Address, Postal Zip Code	58102
City Area Code	(701)
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Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, $0.01 par value per share
Trading Symbol	NODK
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	false

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